SHIB — Why Shiba Inu Coin has $9B+ market cap now? How to understand this situation?
Many of you might hear SHIB or Shiba Inu Coin, amused by the huge increase and insane volume and the hot discussion everywhere about it. Especially in the recent days it seems start the crazy again. But why its “value” increases so much? How can we understand it? I want to share some of my opinions about SHIB coin and the potential reasons for its insane price chart.
I want to put this article simple, concise to express my opinions about SHIB coin. To understand all the crazy, remember these 3 principles:
- In Blockchain world, creating tokens is easy. It is really simple to duplicate and make your own unique ERC-20 tokens (tokens in ETH platform) without costing anything
- Shit is gold if there are people want to buy it
- Bandwagon Effect will let crowd lose their own sights and push things to only one direction
Expanding the above principles, for all of you already know about SHIB, I would like to share my more detailed summary about the SHIB coin and all the phenomenon happening for this coin:
- Technically, SHIB is nothing just a worthless token in the Internet, as it is a copy/paste of the template of code to generate the ERC-20 token (the token in ETH platform). Like what you created in your childhood the random drawings, it can be nothing, but it can be something if 1 millions people want to buy it, right?
- Culturally, SHIB did an amazing job for telling story. (1) They firstly send 50% of the tokens to Vitalik and other 50% to Uniswap and locked forever, announced that it is totoally run by community; (2) The amount is huge and easily attracted attentions for the price huge fluctuation; (3) Icon is cute and make people think of Dogecoin, which has huge price increase before.
- All the “Tech” part for SHIB, is just another story. like Shibaswap, just another duplication, which leads users to think that it is valuable, all these so-called tech things are just story points, added to SHIB culture, which makes people think it will go up.
So, how to understand the crazy price and popular for SHIB Coin? My understanding is, always back to Principle 2, and read that in this way:
Shit is gold IF there are people want to buy it
You have to admit that SHIB Coin solve the IF problem really well, it use its cute icon and natural relationship with Doge to push crowd to a Bandwagon Effect, then “Boom”!